Successful investing is a waiting game. When you invest for the long haul, you need companies that will stick around for decades. And when I say "stick around," I mean that they should survive and thrive for many years. It's not enough to keep your nose over water until 2042 -- these businesses also need to grow and evolve over time. I'm talking about good investments with staying power.
On that note, let me show you three great stocks you could buy on the cheap in the market dips of 2022 and hold for 20 years or more.
1. Amazon
Amazon.com (AMZN 1.49%) has been around for 30 years now. The e-commerce and cloud computing giant is one of the largest businesses on the planet now, but there were always plenty of bears along the way. But the online bookstore started selling many other things, applying the same lightweight operating plan of an online storefront connected to massive warehouses full of goods.
These days, it's almost harder to say what Amazon isn't doing than to list what it does. There is still plenty of room for future growth, though. The overnight and same-day delivery network is only seven years old and still growing. E-commerce accounts for just 15% of American retail sales in 2022. We haven't even talked about the cloud computing cash cow yet. The domestic retail market generates more than two-thirds of Amazon's e-commerce revenues, which leaves most of the world just out of Amazon's hungry reach -- so far.
In many ways, Amazon is the largest start-up you've ever seen. Sales showed a compound annual growth rate (CAGR) of 38% over the last five years. I expect this multifaceted company to continue developing new business ideas and reach into more overseas markets for decades to come.
2. Fiverr
Let's downshift to a much younger and smaller business.
Freelance services market operator Fiverr International (FVRR -1.17%) joined the public stock market as recently as 2019. After a lockdown-boosted inflow of new business and soaring stock prices in 2020 and early 2021, Fiverr's stock has been swooning ever since COVID-19 vaccines became widely available.
It might sound silly to include this small-cap stock with just $334 million in trailing revenues on this list of long-term winners. I'm pretty sure we are looking at the very early days of a huge story here, like buying Amazon stock in 1999. Fiverr stands in the vanguard of the gig economy uprising, where more and more people are replacing their nine-to-five jobs with one or more freelancer or contractor opportunities.
Fiverr is changing the way the world does business. The long-term target market is measured in trillions of dollars, and Fiverr's early lead sets the company up for a long run of market-beating results.
And it doesn't hurt that many investors appear to have tied Fiverr's business prospects directly to the coronavirus crisis, giving up on the company and its stock at the first sign of better days ahead. As a result, Fiverr's stock trades at a 90% discount from the all-time highs of 2021.
That's a big mistake. Fiverr's train to sustained growth hasn't even left the station yet. I think you'll want to have a ticket ready before it does.
3. Roku
Speaking of industries amid a game-changing upheaval, the old-school cable, satellite, and broadcast TV sector is handing over its baton to digital media-streaming services. We are in the early days of that revolution, too, with miles to go before we sleep.
Streaming media is the future of TV entertainment because it offers users greater flexibility and convenience. With streaming, users can watch what they want, when they want, and on whatever device they want, without being tied to a specific schedule or location.
I could have picked a leading streaming content provider here, such as Netflix (NFLX -0.08%) or Walt Disney (DIS -0.55%). These companies -- and many others -- are facing off in the open market, attempting to stake out a plot of land while consumers are picking their long-term favorites. Whoever walks away with the largest trophy in that race will make a fortune for itself and its shareholders, and there's room for more than one world-class champion.
But if you don't want to pick a specific winner in the streaming wars, you can go for the nuts-and-bolts leader in streaming media devices. Roku (ROKU 2.94%) is the best bet here. This is the cleanest direct investment in the streaming market as a whole and a leader in user-friendly media service software for set-top boxes and smart TV sets.
As the streaming market expands, so will Roku's business. On top of that indomitable foundation, Roku is introducing additional revenue streams like advertising services and some original content of its own.
Like Fiverr, Roku has just embarked on a tremendous long-term growth journey, but many investors saw some temporary headwinds and discarded the stock. These shares are also trading 90% below last year's record highs. During this year's generous fire sales, I have been adding to my positions in both Fiverr and Roku. It's not too late to grab some more, and I highly suggest you take a look at these disruptive long-haul innovators.
